It seems everywhere I turn, each hosting company has some clause in their TOS banning image/free/forum hosts... Does anybody recommend a decent service that allows the redistribution of shared hosting?
Have you did a search or pm any of the offers in this forum?
What you can do is call a hosting company and ask them mabey they will charge a little more mabey they wont. Just give them call and ask,
By the way what types of images?
So your site is basically going to be a gallery of sorts? Perhaps the hosts misunderstood your intentions. I know that I allow my clients to host galleries but not free image hosts that allow hotlinking. I believe that HostDime has a similar policy as I used to have a large gallery hosted with them.